When it comes to buying your new ride, you’ll likely face a common dilemma: New or used? While the thought of that new car smell can be tempting, it may not be the best financial decision. With the current economic climate, buying a used car might be the smarter choice.
The trend towards buying used cars has been on the rise in South Africa, driven by the financial advantages and practical benefits they offer. This article will explore why you should consider a used car for your next vehicle purchase.
Why you should consider buying a used car
Buying a used, or second hand, car comes with several compelling benefits that make it a worthwhile option for cash conscious South Africans. Here are some key reasons to consider:
Significant cost savings
One of the most obvious advantages of buying a used car is the lower purchase price. Used cars are often more affordable than new cars. This enables you to potentially get a higher-end model or a vehicle with more features than you could if you were buying a new car. As second hand cars are typically cheaper due to depreciation, the lower purchase price means lower monthly payments if you’re financing your car.
The money saved when buying a second hand car could be used to cover your insurance premiums, fuel costs, maintenance and repairs. The affordability of used cars also makes them an attractive option for first-time buyers or students.
Lower vehicle depreciation
New cars experience rapid depreciation as soon as they leave the showroom floor. A new car could lose as much as 5% of its value after driving a mere 10 kilometres. Within the first year, a new car can lose up to 30% of its value. When you buy a used car, someone else has already absorbed the initial depreciation hit. This means your vehicle should retain its value better, as the rate of depreciation slows down as a car ages.
Buying a used car helps you avoid the steep depreciation costs associated with new vehicles, and gives you better financial stability.
Wide variety and availability
The used car market in South Africa offers a diverse variety of options for you to choose from. With a wide range of makes, models, and price points, you have a better chance of finding a car that fits your needs, and your budget. You may also be able to pick up a good deal on a model that has been discontinued, and is no longer available as new.
Lower insurance costs
Comprehensive Insurance premiums are usually lower for used cars compared to new ones. This is because the value of a used car is considerably lower than a new car. You could save a lot of money with reduced monthly insurance premiums. Lower Comprehensive Insurance premiums can make a big difference to your budget, meaning that you could also afford Value-Added Insurance Products (VAPs), without stretching your budget.
Remember: Make a careful choice when buying a used vehicle
When buying a used car, it’s crucial to make a careful choice to ensure you get the best value for your money. Here are some tips to consider:
- Avoid high mileage cars: While high mileage cars might be cheaper, they often come with more wear and tear. Look for vehicles with lower mileage to reduce the risk of frequent repairs and maintenance costs.
- Check the service history: Always check for the service history of the car. A complete service history shows that the previous owner took good care of the vehicle and adhered to regular maintenance schedules. Avoid cars with incomplete or no service history, as they may have hidden issues.
- Buy from reputable dealerships: Always buy from a reputable dealership. These dealerships usually perform thorough inspections ensuring the car is in good condition.
Don’t Worry About the Warranty
One of the reasons many people prefer new cars is because of the Manufacturer’s Warranty, which provides peace of mind against unexpected repair costs. It’s important to remember that even if a second hand car is nearing the end of its Manufacturer’s Warranty or is already out of Warranty, you can buy an Extended Warranty from Bidvest Insurance.
Consider the advantages of purchasing a used car before you jump right into the deep end and buy a new vehicle. A used vehicle might allow you to buy a vehicle that you would otherwise not be able to afford at the ‘new price.’ This is especially helpful when you need a larger family SUV that carries high prices.
Make a smart investment that aligns with your budget and lifestyle. Happy car hunting!
